pull down to refresh
60 sats \ 3 replies \ @k00b 19 Jul 2022 \ on: Fedi — first wallet of federated e-cash protocol Fedimint protocol bitcoin
Lots of familiar names in the investor list. There seems to be unanimous bullishness on fedimint.
What are your thoughts on this? Are you fine with the tradeoffs?
reply
Custodianship is relatively lame to self custody, but privacy preserving custodianship is relatively awesome to normal custody.
Basically: self custody > privacy preserving federated custodian > normal custodian
It gets kind of interesting too when your fedimint custodian allows you to run smart contracts against the funds they are custodying. Seems like every custodian could become a Liquid-like federation; although, that might be naive.
Disclaimer: my understanding of Fedimint is strictly high level.
reply
Basically: self custody > privacy preserving federated custodian > normal custodian
sometime self-custody doesn't even matter given the specific implementation.
As an example, imagine your airline issues "Airline Tokens" (each token represents 1 airline mile). Does that really matter if you self custody? they are only redeemable by the airline....soooo...self-custody is a bit pointless in that regard.
However, imagine all major retailers join together as a federation of "Award Points Federation" and your airline is a member.
The result is that it removes the single point of failure of your airline just deciding to zap your air-miles balance to 0....basically it becomes a beneficial tradeoff given the reality of redemption.
reply